Vietnam: Is it permissible to enter into a 2-year labor outsourcing contract? What does a labor outsourcing contract include?
1. Is it permissible to enter into a 2-year labor outsourcing contract in Vietnam?
Under Article 53 of the Labor Code 2019, labor outsourcing rules in Vietnam are as follows:
Labor outsourcing rules
1. The maximum duration of labor outsourcing is 12 months.
2. The client enterprise may employ an outsourced worker in the following cases:
a) The employment is necessary for the sharp increase in labor demand over a limited period of time;
b) The outsourced worker is meant to replace another employee who is taking maternal leave, has an occupational accident or occupational disease or has to fulfill his/her citizen’s duties;
c) The work requires highly skilled workers.
3. The client enterprise may not employ an outsourced worker in the following cases:
a) The outsourced worker is meant to replace another employee during a strike or settlement of labor disputes;
b) There is no agreement with the outsourcing enterprise on responsibility for compensation for the outsourced worker’s occupational accidents and occupational diseases;
c) The outsourced worker is meant to replace another employee who is dismissed due to changes in organizational structure, technology, economic reasons, full division, partial division, consolidation or merger of the enterprise.
4. The client enterprise must not dispatch an outsourced worker to another employer; must not employ an employee dispatched by an enterprise that does not have the labor outsourcing license.
Therefore, according to the above regulation, the maximum duration of labor outsourcing in Vietnam is 12 months. Consequently, entering into a 2-year labor outsourcing contract is contrary to legal regulations.
2. What does a labor outsourcing contract in Vietnam include?
Under Clause 2 Article 55 of the Labor Code 2019, a labor outsourcing contract in Vietnam includes the following main contents:
a) The work location, the vacancy which will be filled by the outsourced worker, detailed description of the work, and detailed requirements for the outsourced worker;
b) The labor outsourcing duration; the starting date of the dispatch period;
c) Working hours, rest periods, occupational safety and health at the workplace;
d) Responsibility for compensation in case of occupational accidents and occupational diseases;
dd) Obligations of each party to the outsourced worker.
A labor outsourcing contract in Vietnam will include the contents as regulated above.
Respectfully!
